Shares of US Gambling Operators Profit From DoJ Change of Heart
Posted: December 29, 2011
Updated: October 4, 2017
Further reactions to the Department of Justice flip flop on internet gambling continue to fill the media streams
US Department of Justice announcement that Wire Act 1961 now only refers to sports betting in their eyes, remains the main topic throughout US gambling industry. We continue our coverage initially launched in United States Gambling Giants Applaud DoJ Surrender article.
The latest effect of the DoJ changed position, which may lead to change in American gambling laws allowing online gambling in the country, was the increase in share prices of major gambling operators and online gambling software providers.
Wynn Resorts shares hiked 3.4 percent, MGM Resorts up 4.62 percent, renowned supplier of software to online casinos in United States and worldwide, International Game Technology shares grew by 4.95 percent. Other gainers included Scientific Games Corp. up a staggering 15.37 percent and Bally Technologies increased by 1.57 percent.
An industry analyst at Roth Capital Research, Todd Ellers, told United States gambling news: “We view the ruling as a significant event for the U.S. gaming and lottery industry that essentially opens the door for states to consider offering internet gaming and lottery products (ex sports wagering).”
He went on to add: ”We believe individual state lotteries and vendors like Scientific Games, Gtech , and Intralot will be the first to benefit from selling virtual lottery tickets online. In addition, casino operators with strong brands would also benefit from operating virtual casinos if authorized by enough states. Finally, traditional gaming suppliers like IGT, Bally Technologies, WMS Industries , Aristocrat and Konami should also benefit from providing game content and/or technology to host online casinos.”
However, DoJ announcement sparked mixed reactions from various states with Utah Representative Stephen Sandstrom, expressing his strong opposition to any type of online gambling within the state. He argued that it’s merely a desperate attempt to fix economic downturn, directly caused by Obama’s failed policies.
Sandstrom plans to submit a bill, which will potentially make all online gambling in the state of Utah illegal, before the 2012 State Legislative Session.
The latest effect of the DoJ changed position, which may lead to change in American gambling laws allowing online gambling in the country, was the increase in share prices of major gambling operators and online gambling software providers.
Wynn Resorts shares hiked 3.4 percent, MGM Resorts up 4.62 percent, renowned supplier of software to online casinos in United States and worldwide, International Game Technology shares grew by 4.95 percent. Other gainers included Scientific Games Corp. up a staggering 15.37 percent and Bally Technologies increased by 1.57 percent.
An industry analyst at Roth Capital Research, Todd Ellers, told United States gambling news: “We view the ruling as a significant event for the U.S. gaming and lottery industry that essentially opens the door for states to consider offering internet gaming and lottery products (ex sports wagering).”
He went on to add: ”We believe individual state lotteries and vendors like Scientific Games, Gtech , and Intralot will be the first to benefit from selling virtual lottery tickets online. In addition, casino operators with strong brands would also benefit from operating virtual casinos if authorized by enough states. Finally, traditional gaming suppliers like IGT, Bally Technologies, WMS Industries , Aristocrat and Konami should also benefit from providing game content and/or technology to host online casinos.”
However, DoJ announcement sparked mixed reactions from various states with Utah Representative Stephen Sandstrom, expressing his strong opposition to any type of online gambling within the state. He argued that it’s merely a desperate attempt to fix economic downturn, directly caused by Obama’s failed policies.
Sandstrom plans to submit a bill, which will potentially make all online gambling in the state of Utah illegal, before the 2012 State Legislative Session.
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